Managing Innovation in Business: An Innovation Audit of Dyson

This report conducts an innovation audit of Dyson, a popular designer and manufacturer of household appliances. It covers the company's innovation history, current performance, and capabilities, as well as the industry overview and future trends. The report includes a SWOT analysis and VRIO analysis of Dyson, and discusses the major factors driving the global household appliances market.

Managing Innovation in
Business

EXECUTIVE SUMMARY
The report of “Managing Innovation in Business” is prepared on Dyson which is popular
establishment in industry of electrical household appliances. For Dyson, managing innovation I a
journey which initiated with creating ideas in collaborative manner and further, selecting along
with executing best which adds most of value. The report aims to demeanour innovation audit in
context to Dyson which looks towards its past proceedings, present as well as future actions and
capabilities. The finding of the report includes that Dyson started innovating in 1993. Key
organisational capabilities are patents, financial resources, local household appliances and human
resources.
The report covers information about company and the industry. It also includes performance
and capabilities of the business and details about household appliances in 2021.

Contents
EXECUTIVE SUMMARY ............................................................................................................2
INTRODUCTION...........................................................................................................................1
THE ORGANISATION & INDUSTRY OVERVIEW...................................................................1
The Organisation and its Innovation History ..............................................................................1
The Organisations existing Innovation Performance and Capabilities .......................................3
The Industry in 2021....................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Managing Innovation is handling all kinds of practices requires in introducing something
new that is in practice. With management of innovation, business managers discover new
products, enhance development process significantly addition to reduce costs (Hoerlsberger,
2019). There are companies that do not embrace managing innovation that brings risks related to
outdated solutions to market or industry. It limits their potentials for staying ahead of
competition. Purpose of present report is to conduct innovation audit for a company for
examination of its innovation history, existing level of innovation practices along with
requirements of innovation in future. For this, chosen company is Dyson that designs and
manufactures varied number of household appliances comprising heaters, vacuum cleaners,
lights, hand dryers, air purifiers and many more. It operates in electric household appliance
industry since 1991.
The report covers overview and innovation history of the company. It also highlights current
innovation performance as well as capabilities of company and industry in 2021.
THE ORGANISATION & INDUSTRY OVERVIEW
The Organisation and its Innovation History
Overview of the company
Dyson is popular designer and manufacturer of varied household appliances. It operates
with mission of inspiring new generations of engineers. The company provides material, money
addition to mentorship in the manner that young population can get their hands-on with issues
addition to learn ways to solve all. At the time when any engineer step into the premise of the
company, they innovate something new along with develop new technologies for better life.
Despite of having huge innovative products and services in collection, Dyson believes in
possibilities for further improvements. The establishment emphasise towards solving
complexities which other household appliance businesses have ignored, solve them first through
technology addition to ingenuity.
Innovation History
In 1991, James Dyson established a foundation of Dyson with name of Dyson Appliance
Limited. At first, dual-cyclone vacuum was built by the company and was produced by Philips
Plastics which was an American company. From the year 1986 to 2001, Dyson licenced
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technology within North America to Fantom Technologies for the purpose of entering in the
market directly. It has introduced varied products including cylinder machine, new upright
vacuum cleaner with the help of Root Cyclone technology, Airblade hand dryer, Dyson Hot,
bladeless fan heater, Air Multiplier bladeless fan and many more till 2009. In the year 2013,
Dyson launched approximate of $360 million plant in Singapore (Dyson, 2022). Further, in 2016,
it injected around $100 million for the purpose of enhancing output to projected 11 million of
digital motors within the year. Till 2019, Dyson has expanded in Chicago, Hullavington and so
on with significant expansion programme and opening a new high-tech campus. Till the date,
key innovation offerings of the business include robotic vacuum cleaners, solid-state batteries,
electric vehicles, medical ventilators and collaboration with universities. For truly innovative,
enterprises require to manage innovation in strategic manner as well as communicate
transparently with all involved stakeholders. In the company, building blocks for managing
innovation entails making more informed decisions related to offerings, recognising efforts of
personnel and effective communication with all stakeholders.
Within internal business environment, variant factors impact innovation of an entity
(Acosta-Prado, Navarrete and Tafur-Mendoza, 2021). In context to Dyson, strategists opt PEST
Analysis for scanning macro environment and its impacts on innovation of establishment.
Factors of PEST Analysis impacting innovation of Dyson are underneath:
Political: Political stability in UK supports quality of scientific institutions together with
encourages enterprise’s innovativeness. For example, regulations from political leaders supports
strategic decisions undertaken by managers of Dyson for bringing innovative products and
commercialise them worldwide.
Economic: Easy availability of production factors in UK helps in product innovations of
establishments (Martínez-Alonso, Martínez-Romero and Rojo-Ramírez, 2019). In association to
Dyson, employing larger number of human resources at cheaper rates contributes in bringing
ideas for innovation in products, designs and processes.
Social: High social standard level with UK states better all-around circumstances for
businesses. In relevance to Dyson, preferences, attitudes, likes and so on elements associated to
each customers help analysts to forecast demand for innovative household appliances and make
higher revenues.
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Technological: Within UK, technology is expanding approximate to 2.6 times quicker
against rest of nations (Ismail, 2018). Within Dyson, investment in advanced technologies is
continuous so to develop innovation within Omni Channel experience of customers and
sustaining competitive benefits within increasing digitalized household landscape.
Industry overview
Household appliance industry entails mechanical along with electrical devices that are
used within household. Some of products of household industry are vacuum cleaners, freezers,
refrigerators, cookers, lights and many more. Appliances in the industry are divided into certain
kinds that are small appliances, major appliances and consumer electronics. Some of giant
businesses performing in household appliance industry of UK are iRobot, Hoover, Dematic,
Dyson, Electrolux and hence forth.
The Organisations existing Innovation Performance and Capabilities
SWOT Analysis of Dyson
Strengths Weaknesses
 Using advanced technologies: Dyson
is making use of the highly upgraded
and developed technologies such as six
layers of advanced whole machine
filtration, laser technology, etc. that
save both time as well as cost of the
overall business (SWOT Analysis of
Dyson, 2019). Therefore, it becomes a
major strength for the respective
organisation as it enhance the sales and
profitability level of the company.
 Effective research and development:
This is another strength of Dyson that
the company is conducting research and
development process in such a manner
 High Price: It is a major weakness of
Dyson that its products are more
expensive when compared to its
competitors. This could be a major flaw
for the respective organisation as it may
lose the market share because
customers want their products at less
possible cost.
 Collapse in development of Washing
Machine: It is another major weakness
of Dyson that the founders who were
inspired by the phenomenal triumph of
Vacuum has set out for development of
a brand-new design of washing
machine. On other hand, the
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that helps it in understanding
perceptions of the market share
regarding household appliances such as
vacuum cleaners, air purifiers, hand
dryers and many more. In such way, the
company captures a large number of
customers towards the products of the
organisation and brand itself.
development was a financial loss
instead of a financial gain for the
organisation (Dyson SWOT Analysis,
2022).
Opportunities Threats
 Online Presence: It is a great
opportunity for Dyson to has its online
presence on the multiple social media
platforms, websites and so on
(Cartwright, Davies and Archer-
Brown, 2021). It is a great opportunity
for organisation to provide give option
to its customers to shop online. This
will help the company in enhancing its
customer-base within the marketplace.
 Global Expansion: This is another
opportunity for Dyson to expand its
business in those global markets in
which it does not exist. In such way,
business expansion will provide
assistance to the organisation in
maximising the level of productivity,
profitability and efficiency within the
business.
 High competition: There is intense
level of competition within the
household industry and hence, Dyson is
under considerable pressure from
lower-priced rivalries. The lower-priced
items of these competitors tend to be
purchased by market share that declines
the profitability level of respective
company (Dyson Business Model And
SWOT Analysis, 2022).
 Market fluctuation within UK: This
is another major threat for Dyson that
the household industrial market of the
United Kingdom fluctuates on a
frequent basis. Because of which,
sometimes company may face
reduction in its business operations and
profit margins of the business.
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VRIO Analysis
It is a tool that is used by an organisation in order to analyse its internal capabilities for
categorising its resources on the basis that whether the company holds certain traits outlined
within the framework or not (Pandit and et.al., 2018). Such categorisation permits the company
in identifying the resources that gives a competitive edge to organisation. The VRIO Analysis for
Dyson is given as under:
Capabilities Valuable Rare Inimitable Organised
Financial resources Yes Yes Yes Yes
Patents Yes Yes Yes No
Human resources Yes Yes No No
Local household
appliances
Yes No No No
Valuable: This factor checks the value of the organisational resources and the resources that are
easily available to the company and can neutralize any threat are considered as valuable
resources. Following are the valuable resources for Dyson (Dyson Case VRIO Analysis, 2022):
 Dyson has strong financial base that proves itself a valuable resource because it assist
organisation in any upcoming challenge or opportunity.
 Patents of the respective company are also considered as valuable resource as it permits
Dyson to sell as well as advertise its products without any interference by the
competitors.
 Dyson has a team of highly skilled and talented human resources within its workplace for
achieving higher level of productivity. Therefore, it maintains effective employee
retention which makes it a valuable resource for the organisation.
 The respective organisation deals in extreme differentiated products such as vacuum
cleaners, air purifiers, hand dryers and many more which are truly valued by the
customers of the company and provide it a competitive edge (Dyson case study analysis,
2022). Hence, such local household products are also valuable for organisation.
Rare: This factor determines rareness of resources and such resources are typical to avail by
competitors from market or are in hands of only few. Following are rare resources of Dyson:
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 Financial resources of company are rare as such strong financial base only possessed by
few companies and is not easy for each organisation to attain such financial base.
 Patents are always rare for company as these are not easily available and neither any of
competitors can possess them. These can be used by company without any interference.
 Human resources of company are also rare as it is not in the case of each organisation to
have highly skilled and talented employees.
Inimitability: Those resources which are difficult to imitate are categorised under this parameter
as competitors find it typical to give customers with an option for offering provided by
organisation. Following are imitable resources of Dyson:
 Financial resources are costly to imitate in short-run as these took enlarged profits for
organisation to develop its base.
 Patents are not legal to be imitated and for a competitor to develop this resource, it is not
easy or cheaper task to get it patented.
Organised: Such factor checks on resource management as such resources of the business are so
organised that they are exploited to their full competency (Vrio Analysis of Dyson Ltd, 2018).
 Financial resources of Dyson are well organised and company manage its resources
strategically and make effective use of opportunity which tackling risks.
The Industry in 2021
The major factors that are engaged in driving the global household appliances market
consist of enhancement in the technological advancements, growth in the urban housing sector,
rapid urbanisation, rise in per capita income, improved living standards and many more. All
these are the future trends within the household appliance industry that will take place to more
enhance the growth of respective market sector. Some of these future trends within the
household appliance industry are described as under in context to Dyson:
 Selection process: It is a major future trend that will take place in the respective industry
as the process of selecting the human resources is referred to a series of steps that will be
used by managers of Dyson in hiring the right employee for the right job. This will
provide assistance to the respective organisation in boosting the level of the morale of
organisation and the culture of workplace while keeping lower employee turnover.
 Technological Advancements: It is another factor that will take place within the
industry of household appliances that produces a large number of household products
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such as washers, dryers, vacuum cleaners, air purifiers and many more (Household
Appliances Market Trends 2022). More advancements within the existing technologies
and introduction of new technologies will help the administration of Dyson in realising
the things which can make the customers of the resorptive organisation more satisfied
and loyal towards the company.
 Growth of E-Commerce Sector: The growth of e-commerce sector within the
household appliances industry is at a rapid pace. The fast growth of the mobile devices is
making it easier for the customers of organisations such as Dyson to browse and shop
online. This kind of future trend will bring more efficiency within sales operations of the
company as there will be more demand of household appliances such as air purifiers,
hand dryers, vacuum cleaners by customers which will thereby generates more profits
within the respective industry.
 Improved standards of livings: Because of the rapid urbanisation, increase in the need
for convenience for household work, changes in consumer styles and growing number of
small households are the key drivers for household appliances industry (TRENDS IN
CONSUMER APPLIANCES, 2021). Moreover, the customer inclination towards green as
well as energy-efficient equipment enhances the respective market growth. Therefore,
this future trend will help organisations like Dyson in household appliance industry in
boosting the productivity and profitability of the company and the respective industry as
a whole.
CONCLUSION
From above explanation of the report, it has been concluded that innovation management
within an organisation plays a major role in the process of managing the processes that are
associated with innovation. The process of the innovation management starts at the initial stage
of idea generation and ends up at the last stage of successful and effective execution of the idea
or plan. Within this report, Dyson has been chosen as an organisation that has been demonstrated
different aspects of the report. Some of the concepts that have been included in this report are
overview of the organisation and industry, innovation history of company, analysis of external
business environment through using Pestle framework and many more. There has been use of the
SWOT Analysis and VRIO model for analysing internal capabilities and resources respectively.
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REFERENCES
Books and Journals:
Acosta-Prado, J. C., Navarrete, J. F. F. and Tafur-Mendoza, A. A., 2021. Relationship between
conditions of knowledge management and innovation capability in new technology-
based firms. International Journal of Innovation Management. 25(01). p.2150005.
Cartwright, S., Davies, I. and Archer-Brown, C., 2021. Managing relationships on social media
in business-to-business organisations. Journal of Business Research. 125. pp.120-134.
Hoerlsberger, M., 2019. Innovation management in a digital world. Journal of Manufacturing
Technology Management.
Martínez-Alonso, R., Martínez-Romero, M. J. and Rojo-Ramírez, A.A., 2019. The impact of
technological innovation efficiency on firm growth: the moderating role of family
involvement in management. Journal of Innovation Management.
Pandit and et.al., 2018. Disruptive innovation and dynamic capabilities in emerging economies:
Evidence from the Indian automotive sector. Technological Forecasting and Social
Change. 129. pp.323-329.
Online:
Ismail. N. 2018. Tech Nation 2018 report: UK tech expanding faster than the rest of the
economy. [Online]. Available through: < https://www.information-age.com/tech-nation-
2018-report-uk-tech-faster-economy-123471982/>
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SWOT Analysis of Dyson, 2019[Online] Available
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business-model/>
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analysis.php>
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strategic-analysis-management/kupdf-summry-for-dyson-company/9117474>
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cases/dyson-ltd-from-vacuum-cleaners-to-electric-vehicles/vrio-analysis.php>
Household Appliances Market Trends 2022[Online] Available
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trends-2022-global-industry-share-size-global-industry-analysis-key-market-growth-
analysis-segments-emerging-technologies-opportunity-and-forecast-2022-to-2030-2022-
05-13>
TRENDS IN CONSUMER APPLIANCES, 2021[Online] Available
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know-about/>
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